PSO levy increases should be scrapped – Ó Domhnaill

Donegal Fianna Fáil Senator Brian Ó Domhnaill has called on the Energy Regulator to suspend any increases in the PSO levy in light of rising electricity and gas costs.  The Commission for Energy Regulation looks set to approve a 56% hike in the levy, which will add almost €30 a year to an average household bill.

Senator Ó Domhnaill commented, “I have written to the Energy Regulator urging him not to grant the PSO levy increase this autumn.  The charge, which subsidises the renewable energy sector, was increased last year, and it looks likely that the Commission for Energy Regulation will sanction another large hike in October.

“It is completely unacceptable that the Regulator would approve another increase in light of the disproportionately high energy prices Irish households and businesses are charged.  Gas and electricity prices here are among the highest in Europe and are rising at a much faster rate than the EU average.  Irish customers have been subjected to sustained price increases over the past three years, all of them approved by the CER.

“The role of the CER is to protect the consumer, but there is little evidence of this in the consecutive gas and electricity price increases that have been slapped on energy customers in recent years.  Only last month, the regulator in the UK wrote to power companies in Britain asking them why wholesale gas and electricity price reductions were not being passed on the consumer.  The regulator here should be asking similar questions, and outlining why he continues to approve increases.

“The proposed increase in the PSO levy will add almost €30 a year to an average household bill.  This comes on top of the €300 hike in energy bills that has accumulated over the past three years.  Families in Donegal are being squeezed by these extortionate price rises and it is becoming increasingly difficult for them to stay on top of their bills.  Consumers should not have to pay over the odds for gas and electricity at a time when semi state energy providers are turning huge profits.  In 2013, the ESB reported a profit after tax of €415m, a 23% increase on the previous year”, added Senator Ó Domhnaill

“I’m urging people in the North-West to make a submission to the Energy Regulator outlining these concerns and calling on him to suspend any further increases in the PSO levy”.

Posted: Jul 4, 2014     |     Categories: Uncategorized